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    Gary Gensler defends Crypto Asset Investors

    Gary Gensler defends Crypto Asset Investors

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    Securities and Exchange Commission chairman Gary Gensler called on Congress to expand the SEC's powers to regulate cryptoasset transactions. According to him, most of the cryptocurrencies are securities and should come under the supervision of the SEC. This will protect investors from speculation and manipulation.

     

    What does this mean for the crypto market?

    "The revelations of the head of the SEC did not cause a sharp reaction from the market, which has already become accustomed to the pressure of regulators, but this should not cause the feeling that investors are insured against a painful response to the actions of the American authorities in the future. Now these comments sounded like a kind of warning. Moreover, they can there was also a positive trail - Gary Gensler actually made it clear how management companies can get the Commission to approve the launch of an ETF based on the first cryptocurrency - an event that will remove the barriers to the final institutionalization of the emerging asset class, which will inevitably lead to new records for bitcoin. that the US government is "messing up" the industry. And other cryptocurrencies have no guarantees. Gensler takes the same, if not tougher position than his predecessor Jay Clayton, who initiated the lawsuit against Ripple, accusing the startup and its management of unregistered securities sale. In the last comments, he did not answer p Obviously, Ethereum cannot have the same properties as XRP, "says Chen Limin, chief financial officer and head of trading at ICB Fund.

    "The revelations of the head of the SEC did not cause a sharp reaction from the market, which has already become accustomed to the pressure of regulators, but this should not cause the feeling that investors are insured against a painful response to the actions of the American authorities in the future. Now these comments sounded like a kind of warning. Moreover, they can there was also a positive trail - Gary Gensler actually made it clear how management companies can get the Commission to approve the launch of an ETF based on the first cryptocurrency - an event that will remove the barriers to the final institutionalization of the emerging asset class, which will inevitably lead to new records for bitcoin. that the US government is "messing up" the industry. And other cryptocurrencies have no guarantees. Gensler takes the same, if not tougher position than his predecessor Jay Clayton, who initiated the lawsuit against Ripple, accusing the startup and its management of unregistered securities sale. In the last comments, he did not answer p Obviously, Ethereum cannot have the same properties as XRP, "says Chen Limin, chief financial officer and head of trading at ICB Fund.

     

    How will this protect investors?

    According to Chen Limin, the SEC can put a barrier to the trading of "risky" tokens for retail investors at the legislative level, achieve exclusion from the listing of "dubious" crypto assets, oblige companies to fully disclose the risks of investing in their "securities". An example would be South Korea, where strict rules have actually "compressed" bitcoin exchanges. Most of them may finally exit this business in the near future. Investors are “protected”, but many of them were rather forced to leave for other jurisdictions, where they can continue trading “according to the old rules”.

     

    Is it possible to “regulate” the cryptocurrency market?

    “Completion of the SEC's process of“ calibrating ”the industry may ultimately have a positive effect. The uncertainty that is now preventing a significant portion of conservative-minded institutional investors from entering the market will disappear. a balance between not “killing” the market in an effort to protect investors while leaving room for continued innovation. Otherwise, other jurisdictions could seize the initiative and undermine US financial hegemony, "says CFO and Chief Commercial Officer ICB Fund.

    Gensler asked lawmakers in Congress to give the SEC legal authority to oversee crypto exchanges. He said that many tokens are traded as assets and should fall under the jurisdiction of the SEC, which already has significant powers over digital assets.

     

    If desired, the SEC can name any cryptocurrency as a security.

    "Hypothetically, Ethereum can fall under this definition. The process over Ripple can acquire a symbolic character. Funds based on cryptocurrencies are already widely represented in the market, but before the approval of the ETF, investments in digital assets are actually" not available "for ordinary investors. Bitcoin exchanges, trading platforms like Robinhood offer such capabilities, but they are in a gray regulatory status, "explains Chen Limin.

    Gensler believes that most crypto assets are securities and should be registered and regulated by the SEC. In his comments on the forum, the head of the SEC made it clear that he would not object to the creation of bitcoin exchange-traded funds (ETFs, exchange-traded funds). He considers it possible to open an ETF that obeys strict fund rules and is focused on Bitcoin futures, and not on the cryptocurrency itself, Bloomberg notes.

     

    What is the forecast for quotes for August?

    According to the CFO and the head of the ICB Fund trading department, the high activity in call options in recent weeks indicates the stabilization of sentiment and a decrease in the chances of resuming the downward dynamics in the near future. However, from the point of view of technical analysis, this is already ready - for bitcoin, the market has completed the correctional model "flat" to the wave of decline in April-May. The trigger could be the Jackson Hole Banking Symposium on August 26-28, or the Fed meeting on September 22. These days, the American Central Bank may announce the beginning of the normalization of monetary policy, which may provoke a correction in risky assets, which can also capture the cryptocurrency market.


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